Tesla is struggling to get its cars to customers

Tesla is struggling to get its cars to customers

Tesla is struggling to get its cars to customers

Tesla CEO, Elon Musk, tweeted that the vehicle's radar was not applicable in the case.

Tesla produced 18,345 electric vehicles during the second quarter and delivered 14,370 of them, cranking out about 2,000 cars each week on average.

The results come as the Palo Alto, Calif. -based auto maker revealed last week that a driver of a Model S died while using its autopilot system in early May. The shortcoming also put Tesla's claim of delivering 80,000-90,000 cars this year in jeopardy.

Tesla said it anticipates delivering 50,000 vehicles in the second half of the year. Tesla's net reservations for the Model 3 were 373,000 units as of May 15.

Tesla has plans to build 500,000 cars in 2018 and nearly one million a year by 2020.

The miss on its delivery targets is the latest setback in recent weeks for Tesla.

On Friday, the US National Highway Traffic Safety Administration said US traffic deaths rose by 7.7 percent to 35,200 in 2015 - the highest annual tally since 2008. Tesla waited nine days before informing the NHTSA, but the incident didn't become public knowledge until news of the agency's investigation surfaced.

It said the cars in transit should be out to customers early in the third quarter.

Analysts now question about whether Tesla will meet its ambitious production goals.

Tesla's Q2 deliveries report comes after the automaker confirmed the NHTSA has opened a preliminary investigation into 25,000 Tesla Motors Model S cars after a driver of one of the vehicles was killed using the Autopilot mode.

The driver was Joshua D. Brown, a 40-year-old technology company owner from Canton, Ohio, was so enamored of his sedan that he nicknamed it "Tessy" and applauded the Autopilot's safety advantages.

Shares of Tesla are down almost 3 percent to about $210.15 amid a broader stock market decline.

It's another sign of the growing pains for the upstart automaker, which is preparing to launch its first moderately-priced vehicle, the Model 3, at the end of 2017.

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